Costs of Data Breaches Up 23% from Last Year

A new report from the Ponemon Institute, an organization that publishes the annual “Global Report on the Cost of Cyber Crime,” recently announced that the cost of a data breach has jumped 23% from last year. Here’s what your small to medium sized business needs to know about being prepared in case of a data breach.

The Data Breach by the Numbers

The report revealed that a data breach will cost a large company about $640,000. This price tag includes hefty costs, such as business disruption, information loss, and detection. The report also revealed that it takes a company an average of 31 days to recover, yet experts advise that the time to remediate from a breach should only be less than one week. Interestingly, small organizations have a higher per-capita cost than large organizations. So, what can your business do to be more prepared?

Have a Data Breach Incident Response Plan

An Incident Response is an organized approach to responding to and managing the aftermath of a security breach or attack. The goal of such a plan is to limit damage and reduce recovery time and costs. An Incident Recovery plan should include a clear-cut definition of what your company constitutes as an incident and a subsequent step-by-step process that should be followed carefully after an incident occurs.

Consider Hiring an Information Security Firm

If you contact an Information Security firm after a data breach occurs, your organization will have to pay more money and wait longer to recover. You may not be prepared to remediate and respond in time. Knowing who to call helps your organization avoid loss of downtime, loss of reputation and other potential damages. Investing in preventative measures in the possible event of a data breach is one of the smartest things your business can do to protect itself and its money. If you need help assessing your risk of data breach, contact your trusted IT advisor today.